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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: biznotech who wrote (7512)	1/19/2000 8:24:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 9068

Citrix Optimism Continues (motley fool)By Dave Marino-Nachison (TMF Braden) January 19, 2000 High-flying server-based computing software developer Citrix Systems (Nasdaq: CTXS) continued it's startling run today, the shares adding a few points as the company reported encouraging fourth-quarter numbers and announced plans to split its shares. Citrix stock crossed into the $160 range this morning, setting a new all-time-high for the shares, following news that the company turned in Q4 revenues of $118.1 million and net income of $0.38 per share, a penny better than Wall Street expected. Full-year revenues were $403.3 million, 62% above last year's mark, while net income nearly doubled. Following a bang-up 1999, in which the shares rose approximately 200%, Citrix will split its shares 2-for-1 on Feb. 16. The move will mark the fourth split since Citrix went public in December 1995. Ft. Lauderdale-based Citrix enjoys a leadership position in the burgeoning application service provider (ASP) system business, the employment of which allows users to access computer applications over the Internet even when not at their desks or personal computers: the extremely useful Whatis.com website uses the term "apps-on-tap" to describe ASP with a sense for rhyme and expression prized by poets and menu writers for centuries. Citrix's software helps ASPs run their application servers, reducing bandwidth needs and boosting compatibility with their networks and the gamut of devices users might use to access them, from PCs to laptops and Web-enabled portable telephones. Among other potential benefits to ASP users: reduced installation and technical support time and costs, as well as speed and performance comparable to or better than traditional networks. It's the expected continued growth of the company's ASP products -- including its flagship MetaFrame, which allows access to NOW 50 component Microsoft's (Nasdaq: MSFT) NT network environment -- and Citrix's strong position in the industry that has the company trading at nearly 100 times projected full-year 2000 EPS. (Though Microsoft is a competitor of sorts -- and may eventually become an even more significant one as it builds Citrix-type capabilities into its servers, it hedged its own bet by taking a small stake in Citrix.) Citrix's move into the ASP software business is being made in "pay-as-you-go" fashion, which will tie its revenues to the usage levels of its clients -- many of which are developing businesses themselves. That, the company admits, means measurable revenues stemming from the rental-esque business are a ways away with that time possibly measured in years. Likely complimenting this growth in the meantime will be the development or acquisition of value-added services to stay ahead of Microsoft and others. "This is a relatively new, seemingly hot area," company consultant and former CFO Jim Felcyn told Bloomberg in November. "We see this market evolving... over a longer period of time." Still, Citrix wants to be ready to capitalize wherever opportunity may hide: the company today said it will develop a version of MetaFrame for the UNIX operating system, to be available in Q2 and compatible with Windows-based applications as well. Sun's (Nasdaq: SUNW) Solaris operating system also now falls under the Citrix umbrella. All this very likely means much of Citrix's projected growth is already built into the share price, but that doesn't mean there isn't any upside. They way companies maintain high valuations is through execution, and Citrix -- for 10 years now a leader in the server-based computing world -- has certainly shown it has the ability to make its business model go. With momentum and a long string of upside earnings surprises behind it, there are many who are expecting Citrix's beat to go on for some time.

To: biznotech who wrote (7512)	1/19/2000 9:01:00 PM
From: David Lawrence	Read Replies (1) \| Respond to of 9068

>>Squawk has taken to posting more intelligent written soundbytes, which helps. Sort of. I didn't see Ed this time, but did you catch the piece later in the show where they started an satellite link interview with the CEO of some start up company? Haynes asks him the typical "what do you do?" About 2 seconds into his answer, they lose the feed. Haynes starts squirming about live TV, and going back and forth with the producer about whether or not they lost the guy. A good 30 seconds later, they get they guy back just as he's finishing up his, to him, uninterrupted answer. He had no clue whatsoever that the feed was lost. Hayne's says "Oh, boy", and laughs out loud. The interviewee returns a confused smile, and Haynes, without explanation, says "Well, all that's fine.... but what do you do?". So, I agree with you, sort of. :-)